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Fundamental error
Self-serving bias error
OR
Much of an organization’s success or failure is due to external forces outside of managers
control.
Q5: What is External Environment?
The Factors and forces outside the organization that affect the organization’s performance.
Identifying core strengths, weaknesses, opportunities, and threats lead to fact-based analysis,
fresh perspectives and new ideas.
SWOT analysis works best when diverse groups or voices within an organization are free to
provide realistic data points rather than prescribed messaging.
LONG QUESTIONS:
Q1: Define External Environment?
Those factors and forces outside the organization that affect the organization’s performance.
These are:
Demographic force
Economic force
Political force
Technological force
Global force
Socio-culture force
Demographic force: These forces are related to people and concerned with trends in
population.
Age
Gender
Population
Family member
Education
Occupation etc.
Economic forces: These forces are dimension reflects worldwide financial conditions.
Certain economic conditions of special concern to organizations.
Inflation
Interest rate
Employment
Stock fluctuation
Political forces: The political and legal dimensions of the external environment include
regulatory parameters within which an organization must operate.
Global
Federal
Laws
Provincial
Local
Technological forces: The technological dimension of the external environment impacts
the scientific processes used in changing inputs. The success of many organizations depends on
how well they identify and respond to external technological changes.
MIS
Laptops
I pads
Global forces: The global dimension of the environment refers to factors in other countries
that affect U.S. organizations.
Planning
Organizing
Staffing
Leading
controlling
Oil prices: crude oil or “black gold,” is one of the world's most precious commodities: Its
price affects the economic ecosystem at every level. The supply crude oil is also determined by
external factors, which might include weather patterns, exploration and production (E&P) costs,
investments, and innovations.
Culture constrain what they can do or cannot do and how they manage.
Hire people with personality and attitude Do not hire people
consistent with customer service, friendly,
attentive, enthusiastic, patient and good
listening skills
Do not allow people to themselves to express
Allowing people to be themselves to express their moods
their moods and feelings without guilt or fear
of reprimand
Clarity of role and expectations among Do not have clarity of thoughts and expectations
members among members